BT Cellnet aims to double users to 12m by 2003
Saturday 11 December 1999
The forecasts were made as BT unveiled a joint venture with EMI Group, the music publisher, to provide real-time music news and song clips through BT Cellnet's Genie Internet service provider.
Beginning in January, Genie will send news to subscribers in text message form. For 5p per minute, customers will be able to call to hear more. Users will be offered breaking news about EMI stars such as Blur or the Spice Girls and hear excerpts of future releases on the EMI and Virgin labels.
The venture follows several new media and online investments made by EMI in recent months. EMI shares closed up 30.5p at 610p, capping a 50 per cent gain in two months.
BT Cellnet's forecasts would imply a small drop in its share of the mobile market to 30 per cent. But analysts expect any market-share reduction to be compensated for by strong revenue growth in information and e-commerce services.
"The core voice business is closing the gap with Vodafone," said Peter Erskine, BT Cellnet's managing director. "And we are leading in the data area, where Genie has 370,000 users." He added that Genie users - expected to reach 600,000 by March - spend more and are less likely to disconnect.
The mobile phones unit expects operating profits to exceed pounds 300m in the year to March 2001, with earnings before interest, tax, depreciation and amortisation (EBITDA) of pounds 600m.
That forecast represents a rapid rise in earnings from current levels. Operating profits for the half to September were pounds 31m, while EBITDA was pounds 145m. BT also forecast that year-to-March 2000 operating profits would be pounds 130m, with EBITDA at pounds 380m.
The fast increase in earnings confirms the feeling of many analysts that BT gained a bargain when it bought the 40 per cent of Cellnet it did not already own from Securicor for pounds 3.2bn in September. BT stock gained 12.5p to 1,427p yesterday.
- 1 Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
- 2 Margaret Thatcher 'expressed fears of Asian rising' at Anglo-Irish summit in 1984
- 3 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 4 Sussex couple die in suspected Christmas Day 'suicide pact'
- 5 The Unluckiest People of the Year 2014 (and one very unlucky giraffe)
Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
Margaret Thatcher 'expressed fears of Asian rising' at Anglo-Irish summit in 1984
UK weather: Warning for more snow and ice as freezing temperatures and gales hit Britain
UK weather: Travel chaos continues as King's Cross train delays add to snow on roads
The Unluckiest People of the Year 2014 (and one very unlucky giraffe)
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Immigrants make UK racist, says Ukip councillor Trevor Shonk
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...